Vietnam Streamlines ODA Management with New Decree
Vietnam has enacted Decree No.242/2025/ND-CP to simplify the management and use of Official Development Assistance (ODA) and foreign concessional loans. The new decree aims to create a more open, transparent, and efficient framework, accelerating project preparation and decision-making.
The Asian Development Bank (ADB) welcomes the decree, expecting it to speed up project preparation with line ministries and executing agencies. The ADB is currently working with Ho Chi Minh City on two large-scale urban flood control projects, hoping to expedite investment approval.
Over the past three decades, ODA and foreign concessional loans have been crucial to Vietnam's development. They've supported major projects like Can Tho Bridge, My Thuan Bridge, and the Ho Chi Minh City Environmental Improvement Project. The government is now planning more projects with international partners, including infrastructure, green transition, and climate protection initiatives.
Decree 242 simplifies procedures for projects using ODA funds, allowing greater decentralisation to local authorities. It also addresses challenges like complex procedures and slow disbursement. With this new decree, Vietnam hopes to unlock more international resources for its development projects, including key initiatives in the Mekong Delta.
